What Makes Spotify become Number One in Music Streaming Provider?


IDNBC.COM - Well, we all know that the number one music streaming provider in the world was founded in 2006 by Martin Lorentzon and Daniel Ek. This music platform was made as a response toward the increasing of piracy issues. 

Then Spotify was launched in 2008 and the first strategy is offering free services such as ads, but the founders have expected their users to choose some options to pay around $10 each month and get the ad-free experience while listening to good music.

Spotify as music streaming provider came from rags to riches

We all know that the platform suffered a lot from the negative cash flows during their first couple years and realize that you never beat several big sites if their services are not better rather than piracy. 

So, how did Spotify beat piracy?

Well, Spotify offers the users with the songs come from all genres in one platform coming from the latest release songs to old songs as well. 

Besides that, during a few years, this is pretty hard to download songs illegally because of some legislation and crackdowns as well. 

Therefore people prefer using one platform which is more efficient rather than using illegal sources to download music. That’s what music streaming provider did for their users.

But, there are also some heavyweight competitions in this industry such as Soundcloud Go and Apple Music. 

Of course, Apple always goes with iTunes where you can purchase for the albums or songs, but they should catch up with Spotify since you cannot keep selling the songs for a specific price, while there are other options to listen in almost every song on the platform for a very cheap price.

What makes this music streaming provider become number one?

They use a market penetration

To strengthen their competitive position, this platform expands its service available to the more regions and states, even though they also use an intensive strategy where the goal is to make the growth in existing markets where the music platforms were already operating. 

Therefore, they make competitive advantage in both existing markets and new markets as well. 

When you start to calculate the growing subscribers, it is also very beneficial for the artists as well, since many of them are interested in making a deal with Spotify since they can see the sub keeps going up.

It also flows in the daily use of those who will likely become the subscriber, since their favorite albums and artists are already available on their music platforms as soon as possible.

The market development

Spotify also includes product development which results in growth. 

They offer services related to the music itself. 

For example, partnering with Facebook, they create options where you can send the songs to your friends through Facebook and Instagram as well. 

You can add any song from Spotify to your Instagram account where your followers will see what you listen to.

It may look simple, but this music streaming provider can make a competitive advantage, giving something more to their subscribers and promote their products at the same time.